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Econocom Group SE — Earnings Release 2012
Jul 24, 2012
3943_iss_2012-07-24_bb462f2c-18dd-4918-a9dd-3061c6fda70e.pdf
Earnings Release
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REGULATED INFORMATION
24 July, 2012
REVENUE DOWN SLIGHTLY (-3%) HALF-YEAR RESULTS EXPECTED TO RISE SHARPLY AND ANNUAL FINANCIAL GUIDANCE CONFIRMED
Revenue
Econocom Group, the European leader in business-to-business ICT infrastructure management, posted consolidated half-year revenue of €737 million, versus €763 million in the first half of 2011.
This business trend shows that the group's businesses fared well despite the economic climate, in which certain clients were particularly hesitant, resulting in a number of projects being postponed.
A SHARP RISE IN HALF-YEAR RESULTS AND A STRONG CASH POSITION
Recurring operating profit is set to rise sharply compared with H1 2011 (€18.6 M in 2011), due to healthy sales margins and costsavings. Net profit is also expected to increase considerably due to a significant drop in financial costs and exceptional reorganisation costs lower than in H1 2011.
The cash position has risen by almost €50 M compared with the first half of 2011.
A NUMBER OF TARGETED EXTERNAL GROWTH TRANSACTIONS
During the period, Econocom made two acquisitions. The expertise brought by Centix (virtualisation solutions) and Tactem (telecoms management solutions) has already enabled the group to win a number of major contracts which will have a positive impact in the coming half-years.
Other acquisitions of SMEs with a view to enhancing the group's offering are currently under consideration and could be finalised in the coming months; for example, on 17 July, the group announced it has signed an agreement to acquire Cap Synergy, a French systems integrator specialising in network and IT system security.
FINANCIAL OBJECTIVES CONFIRMED
In light of the healthy business outlook, the group maintains its annual growth guidance: a slight rise in revenue, recurring operating profit in excess of €70 million, and net earnings per share of almost €2.
The half-year results will be published after the close of trading on Thursday 30 August 2012.
About Econocom: Established in 17 countries with 3,700 employees and consolidated revenue of €1.58 billion in 2011, Econocom is Europe's leading independent provider of business-to-business IT and telecoms infrastructure management services.
Its services include consultancy, distribution, leasing and a complete range of IT outsourcing services. The Econocom Group share (BE0003563716 - ECONB) has been listed on the Euronext NYSE in Brussels since 1986 and is part of the BelMid index.
For further information: www.econocom.com Follow us on Twitter: https://twitter.com/econocom
Contact investor and shareholder relations: [email protected]
PR contact: [email protected]